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Jet Engine Maker Safran Raises 2013 Target After Sales Jump

Apr. 23, 2013 - 08:23AM   |  
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PARIS — French aerospace group Safran raised on Tuesday its 2013 sales target after posting an annualized 9.5 percent jump in the first quarter of the year and said it would buy Rolls-Royce's half of a helicopter engine joint venture.

Safran reported sales of 3.4 billion ($4.4 billion) in the first three months of the year from both its widely used aircraft engines and

aftermarket services.

Jet engines provided to Airbus and Boeing alone accounted for 1.83 billion in sales, a jump of 15.5 percent from the same period a year earlier, a statement said, as global aircraft manufacturers continue to book substantial numbers of orders.

Safran Finance Director Ross McInnes told a telephone news conference that the group would buy out Rolls-Royce's share of a helicopter engine joint venture for 293 million.

The unit builds RTM322 engines for US Apache attack helicopters, the European NH90 multi-role model and the Agusta-Westland EH101.

Meanwhile, "since the beginning of the year, our global civil aftermarket performed satisfactorily with 10-percent growth over an already strong first quarter of 2012," Chairman and Chief Executive Jean-Paul Herteman said in the statement.

"Based on growth in the first quarter of 9.5 percent and the contribution of the newly acquired Goodrich business, we upgrade our full-year revenue guidance for 2013 and confirm our renewed high confidence in our outlook for 2014 and beyond," he added.

Safran finalized its purchase of Goodrich Electrical Power Systems for 300 million in the first quarter, becoming a world leader in onboard electrical systems.

For 2013 as a whole, the company now expects sales to climb by seven percent, compared with an earlier outlook of five percent.

Adjusted operating income is tipped to rise by around 15 percent following an estimated 200 million in research and development investment and another 200 million in capital expenditures.

The group has also been boosted by deliveries of its turbo-propeller engines for the Airbus A400M military transport plane.

Elsewhere, Safran also reported increased sales of its landing gear assemblies and airport security products, which include biometric identity units and explosives detection systems.

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